Motilal Oswal's research report on PVR-INOX
Adjusted EBITDA declined 70% YoY to INR108m as revenue growth of 34% (on low base of omicron-hit 4QFY22) was offset by high opex, mainly due to lower occupancy (22.2% in 4QFY23 v/s 25.1% in 4QFY22). Pro-forma performance v/s FY20: EBITDA saw a negative 14% CAGR due to higher opex as occupancy remained below the pre-Covid level. Revenue was flat as lower occupancy was offset by better ATP and footprint adds. Continued underperformance of Bollywood movies, increased competition from OTT platforms and lower occupancy continue to dent profitability.
Outlook
However, a healthy content pipeline, coupled with expected 150-175 screen additions annually for the combined entity, should aid revival in the coming period. We reiterate our Neutral rating with a TP of INR1,570.
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